Alpha-Eurobank will be a profitable merger

The new Alpha-Eurobank format will be profitable, with estimated annual revenue of 3 billion euros, as indicated itoprotothema.gr by the CEO of the new bank Nikolaos Nanopoulos and one of the general managers, Yorgos Aronis.

They note that Greek banks are not like the Irish ones and in the end will not have the high forecast received by the Allied Irish Banks and the Bank of Ireland.

Specifically, as Nanopoulos mentions, the total revenue of the Irish was 3,9 billion euros against an annual revenue of 3 billion estimated by the Goldman Sachs consultants of the new company.

With this figure in annual revenue and moving to a capital strengthening of 2,1 billion euros, the new bank will have a capital stock large enough to counter both the losses from bonds and the insecurities.

Regarding the 2 billion, it should be noted that Qatar will get back 150 million euros from the 500-million eurobond with interest, i.e. 10% per annum, while 350 million will be collected in shares.

As announced yesterday on the results of the two banks, the impact from the losses of bonds on Alpha Bank was 539 million euros and 664 million on Eurobank. Regarding the subprime loans, Aronis says that predictions for the Irish were at 2 to 3% per year, while the revenue in Greece before the estimations was at 3 billion euros. As he adds, the estimations for Greece will be 2,5% of the total 2 or 3% of Ireland.

Of course, all of the above will happen if the climate in Greece improves in the near future and the economy gets a reboot. Otherwise, estimates will remain estimates for a long time.

Demonization of Blackrock

"The issue of Blackrock has been demonized by the press," says Nanopoulos, who notes that the impact of insecurities will be lower than the reported 15 billion euros (5,4 billion from bonds and 14 to 15 billion from subprime loans).

On the other hand, the new bank will not pay right away the 1,9 billion for preferred shares that have been received by the two banks.

The repayment will happen when the bank is able to pay and in addition, this process does not depend only on the bank but also on the authorities.